1. Resource Adjustments Michele Mock/Mary Clary Financial Policy & Training

2. What is a Resource Adjustment? A Resource Adjustment is an online process in which costs are transferred from one LBNL project or account to another.

3. Criteria • A Resource Adjustment is to be made only when it meets the following criteria: Necessary Appropriate Fully Documented & Justified

4. Necessary When the costs, as originally recorded, were: • Charged to an intermediate cost objective & need to be allocated to final cost objectives; or • Coded improperly, thereby, charging wrong project(s), suspense/dropout project(s), or an inappropriate resource category; or • Where there has been a justifiable & appropriate change in decision as to where a resource is to be used.

5. Appropriate A Resource Adjustment is appropriate only when costs are: • Reasonable (prudent business judgment) • Allocable to the receiving project (project receives benefit) • Not expressly unallowed in Contract 31 (via Federal Acquisition Regulations – FAR)

6. Fully Documented • Documentation is subject to audit and should be retained for three years according to Laboratory archiving policies. • An email confirmation to the authorized requestor is to be retained with other supporting data. • Documentation, including all approvals is to be maintained by the originating division

7. Approval Threshold • Resource adjustments of ≥ $5,000 need approval from a designated approver. • Threshold definition: The amount of total direct cost debits or credits of the Resource Adjustment. • Exception to threshold: • Month end reversing adjustments/accruals by OCFO • Recurring service center recharges require a single, annual approval

8. Labor Adjustments in HRIS • Labor adjustments are resource adjustments. • The same rules apply!

9. Justifications – Not So Good • Moving the unallowable costs of $ from XXXXXX to the appropriate account XXXXXX. • Project manager did not know who to contact to change project id on telephone services. • Correction

10. Justifications - Better • Transfer travel costs to benefiting projects. Dr. XXXX erroneously charged XXXXXX for her Dec trip. Her time card shows XXXXXX should be the benefiting project. • To reallocate Sep04 Fedex charges that inadvertently went into the division dropout acct. because the airbill was missing a project id and/or had an invalid project id listed. This RA will transfer costs to the appropriate benefiting project. • Employee's effort went to the drop out project ID. This adjustment moves the cost to the correct project ID.